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Investment in Renewable Energy~ For sustainable growth of Brazil and Japan ~

Salvador - August 10, 2011

Shigeru Oono

Sojitz Corporation

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□ Global Investment in Renewable Energy

Graph shows trend of global new investment in renewable energy during the period 2004 – 2010.

US$ 211 billion was invested globally in 2010 which is over 6 times the investment of 2004.

Significant increase in smalldistributed capacity, namely rooftop PV.

*note) does not include energy-smart technologies such as smart grid and electric vehicles

Ref: Global Trends in Renewable Energy Investment (UNEP)

CAGR 36.2%p.a.(’04-’10)

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□ Top 10 Invested Countries in Renewable Energy in 2010

#6 Canada 5.2 billion#7 Spain 4.9 billion#8 France 4.0 billion#9 India 4.0 billion#10 Czech Republic 3.6 billion

#1

#2

#5

#4

#3

US$

Ref: Global Trends in Renewable Energy Investment (UNEP)

China ranks top with approximately US$50 billion of investment in 2010 along with other emerging countries such as Brazil and India ranking in 5th and 9th respectively.

Without counting small scale projects, new investments in emerging countries exceeded that of developed countries for the first time in 2010.

#9

Japan

3India

4

Note) includes small scale projects (namely rooftop PV)

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□ Electricity Generation by Sector

Graphs show forecast until 2035 of growing renewable sectors of OECD and non-OECD countries.

Growing need to diversify investments in region as well as sector.

0

1000

2000

3000

4000

5000

6000

7000

8000

CY2008 CY2015 CY2020 CY2035

Hydro Biomass WindGeothermal Solar PV CSPMarine

Ref: IEA World Energy Outlook 2010 New policies scenario

CAGR(’08 – ’35)

CAGR(’08 – ’35)

Marine CSP Solar PV Geothermal Wind Biomass Hydro

16.3%19.5%12.0%

4.2%8.0%4.2%0.7%

CSP Solar PV Geothermal

Wind

Biomass

Hydro

--

7.2%

15.0%

11.1%

2.8%

< OECD Countries > < Non-OECD Countries >

CY2008 CY2015 CY2020 CY2035

( tWh )Electricity Generation from Renewable Energy

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BiomassPower Photovoltaic CSP Wind Geothermal

Bio-plastic(Dow Chemical) (FCC)

(InternationalPower) (Windfarmer)

Wood Pellet(Plantation

Energy)

Mitsui

Trading

Bio-ethanol / Biomass Power(ETH,Odebrecht) (100%) (KOMIPO) Bio-ETBE

(Braskem)Sojitz

Bio-ethanol(Petrobras)

Bio-pet(China Man-made

Fiber)

Toyota

□ Recent Investment in Renewable Energy Projects by Japanese Trading Companies

Based on company press release (announced 2006 – to date)

Bio-pellet(Vis Nova Trading) (Acciona)

(Acciona)Mitsubishi

(EGCO)

(Bunge) (EnergyManagement)

(Abengoa)Itochu

(JGB)

BiomassBio-fuel

(GE, Sumitomo,Google)

(Datang)Sumitomo (EDD)

(SAG Solarstrom)

(Invenergy)

(Invenergy)(HemphillPower & Lights)

Geothermal(GDF Suez)

Marubeni

(Osaka Gas)

(GE, Itochu, Google)

= Operation has not started as of today.

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□ Governmental Support for the Development of Renewable Energy Projects

Loan

BRAZIL RENEWABLE ENERGY PROJECTS

Government Company Banks

Equ

ity

Equ

ipm

ent

Exp

ort

Loan / Equity Participants/Guarantee

Insurance

EXPORTERTrading company

Manufacturer

INVESTER LOAN LENDERTrading company

ManufacturerTrading company

Banks

Trade and Investment Insurance for Preventing Global Warming

GREENGlobal action for Reconciling Economic growth and ENvironmental preservation

JAPAN INDUSTRY SECTORTrading companyManufacturer

BRAZIL GOVERNMENT SECTORGovernment

BRAZIL RENEWABLE ENERGY PROJECTSCompany

WorkEntrustment

Instruction for Cooperation

Memorandum ofUnderstanding

(MOU)

Implementation Documents (ID)

Public offer

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□ Introduction of Sojitz’ Activitiesin Renewable Energy Sector

Bio-ethanol plant (ETH)

The Solar Park in Betzweiler

USA■PV Power Project Developer (from 2010)

■Sojitz’ major investments in Renewable Energy Sector▲Sojitz’ major trading activities in Renewable Energy Sector

Japan■Biomass power generation ▲ PV modules to Asia, North and South America, Europe, and Africa

GERMANY■Photovoltaic (PV) Power Generation (from 2010)

BRAZIL■Bio-ethanol production and biomass power generation▲Bio-ETBE trade to EU and Japan Markets▲High Purity Silicon Metal for PV cell use to Japan and Korea

Silicon production plant (Minasligas)

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□ What are the innovations needed in the Renewable Energy Sector ?

Agricultural InnovationIncrease of sugarcane

Production yield

Industrial InnovationCellulose Feedstock for

Ethanol Production

Technological InnovationImprovement in conversion efficiency of PV cellImprovement in Concentrating Solar Power Technologies

Brazilian and Japanese companies play an important role in technological breakthrough of the Renewable Energy Sector.

Technological InnovationBiomass fired power systemBioethanol fired power system

Several Brazilian entities

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Collaboration of Japan and Brazil- Daido’s Concentrator Photovoltaic Power Generation -

Concentration Photovoltaic (CPV) has higher efficiency and lower cost than conventional solar cells.

Solar Tracking

[Effective installation in pasturelands in Brazil]

Homogenizer : Wide acceptance angle

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OBRIGADO!ARIGATO!